The displacement of non-renewable biomass under the Clean Development Mechanism (CDM) has been discussed controversially since 2005 when the CDM Executive Board had withdrawn a small-scale methodology for the displacement of non-renewable biomass. Most Parties have acknowledged the considerable benefits for sustainable development of these project types, in particular regarding poverty alleviation and reducing health risks. Furthermore, enabling such projects under the CDM may contribute to changing the geographical distribution of CDM projects since these project types are particularly interesting for countries that heavily rely on biomass as a fuel, as it is the case in many Least Developed Countries (LDCs).
This paper first discusses the methodological and legal challenges of crediting such projects and then provides an indicative proposal for two small-scale methodologies. Note that this paper only expresses the view of Öko-Institut and not that of the German government, the European Union or any other organization.